There is a slump in general white-collar crime prosecutions nationwide. But at the FBI”™s White Plains agency, Special Agent Carl Cartuaro says he”™s seeing an uptick in employee theft, especially from those in upper management.
“It”™s been interesting lately,” Cartuaro said. “It”™s a trend we see an increase in, perhaps because of the economic times.”
Whether it”™s a chief financial officer sending checks to fake vendors or an employee taking advantage of a one-signature payment system, Cartuaro said business leaders should be examining their internal controls. Often employee theft only comes to light after there”™s a fresh set of eyes on the books, he said.
During a seminar Dec. 6, several fraud and law experts said businesses can best avoid fraudulent activity by separating financial duties, limiting access and performing periodic reviews. The seminar was hosted by Citibank and Citrin Cooperman & Co. L.L.P., an accounting, tax and consulting firm with offices in White Plains and Norwalk. The event was held at Citibank’s executive development conference center in Armonk.
“Do a little due diligence,” Cartuaro said. “Everyone works hard for their money.”
The most common white-collar crime nationally is fraud by wire, radio or television, followed by mail fraud and bank fraud, according to the U.S. Department of Justice. It can be devastating if a thief is one of your own, but it won”™t happen unless the opportunity to steal exists in the first place, said John Matula, a licensed and bonded private investigator.
Transactions should be spot-checked for dollar amount and payee regularly, in addition to occasional outside audits, said Matula, who has owned his practice since 1981. There could be a big difference between the payees, Superior Cleaning Services and Superior Janitorial.
Additionally, Matula said to be wary of employees who refuse to take vacations and work excessively. No one has the opportunity to sit at those employees”™ desks to see what they”™re up to, he said. They could be hiding something. Matula urged employers to perform rigorous background checks on new employees and set up anonymous hotlines for employees to report suspicious behavior, even within small companies.
Once an employer has reason to believe an employee has stolen, he or she should proceed with caution and determine what the scope of the investigation will be, said Susan Corcoran, an attorney at Jackson Lewis P.C. in White Plains. Company officials will need to decide whether or not to get the FBI involved or press charges. They”™ll also need to be discreet and respectful when asking the employee to leave, to avoid an emotional distress lawsuit.
“We have to think about what our game plan is,” Corcoran said. “Despite the fact that you may be upset, careful planning and communication is very important.”
